15 Year Term Life Insurance

What is a 15 Year Term Insurance Policy?

A 15 year term life insurance is a type of term insurance that offers financial protection to your loved ones in the event of your untimely demise. During the 15-year policy term, if the policyholder suffers an untimely death, the insurer will pay the selected sum assured as death benefit to the nominee of the policy. 

Your family can then use the benefit amount to take care of their financial needs, like their monthly expenses, taking care of the outstanding loan amount, paying for the child’s education, and other financial emergencies that may arise. With these plans, you can take care of the financial stability of your family for the required tenure, save on taxes, and lead a stress-free life knowing that your family is financially safe.

Note: Now that you know what is 15 Year Term Life Insurance Policy, you should also get to know about what is term insurance to buy a term plan for your loved ones.

What are the Benefits of a 15 year Term Insurance Policy?

Here is a list of benefits of buying a 15 year term life insurance policy in India 2025:

• Affordable Coverage
  Term insurance plans are the most affordable type of life insurance. Thus, with the 15 year term insurance plans, you can get large life cover at highly affordable premiums. 

• Customised Cover Tenure
  The 15 year term plans provide a customised policy term to fit your individual needs. These plans are best suited for individuals whose financial liabilities will no longer be an issue in the next 15 years.

• Future Financial Needs
  If you have a child, a 15 year term insurance policy can help your spouse take care of the child’s growing educational pursuits with the benefit amount on your death. This term insurance for spouse can also help take care of monthly expenses or plan for other aspects. 

• Refund of Premium
  The 15 year term life insurance premiums paid during the policy tenure maybe returned, if you have opted for a Term insurance with return of premium or a no cost term insurance with special exit benefits. With these plans, the premiums paid until policy termination are refunded (excluding GST, modal premiums, and other nominal charges)

• Income Replacement
  If you are the only earning member of your family, proceeds from your death benefit amount can act as income replacement for them should anything were to happen to you in these 15 years of coverage.

• Tax Benefits
  15 year term plans provide term insurance tax benefits as per the prevailing tax laws under sections 80C and 10(10D) of the Income Tax Act, 1961. It is advised that you consult with your financial advisor to better understand the tax benefits applicable to your profile.

How Does 15-Year Term Life Insurance Work?

For the policy term of 15 years, you are liable to pay regular premiums as per the mode of payment chosen (monthly, quarterly, half-yearly, yearly). Regular premium payments will make sure the benefits are active and the policy is in force. If you happen to die during these 15 years, the nominees assigned by you can claim the death benefit payout. Upon successful verification, the insurer makes a lump sum payout of the benefit amount or in installments, as per the terms of the deceased policyholder. 

If, however, you survive the policy term of 15 years, you or your beneficiaries cannot claim any benefits. This is why such plans are known as pure risk protection plans. You can choose to renew your existing policy. However, renewal of a policy may require you to undergo a medical check-up depending on your current age. 

How Can I Calculate the 15 Year Term Life Insurance Rates in India?

You can calculate the 15 year term life insurance cost using an online term insurance calculator. The premium depends on a few key factors such as your age, annual income, the sum assured you choose, and the policy term. Your medical history and lifestyle habits like smoking, drinking, or using tobacco also play a big role. If you have any existing health conditions or risky habits, your premium is likely to be higher because there's a greater chance of a claim in the future. Using a tool like 15 year term life insurance quotes calculator can help you get an accurate estimate and compare plans to find the best term insurance plan for your needs.

What are the Factors to Consider When Buying 15 Year Term Insurance Plan?

Before you buy a 15 year term life insurance policy, make sure you have taken into consideration the following factors:

• Your Age and Life Stage
  The earlier you buy term insurance, the lower your premium will be. If you're in your 30s or 40s, a 15 year term insurance policy can offer solid coverage until your major financial responsibilities are taken care of. Your life stage, whether you’re single, married, or have kids, also affects how much cover you need.

• Choosing the Right Sum Assured
  The sum assured should be enough to replace your income and cover your family’s expenses if something happens to you. A good rule of thumb is to go for coverage that’s at least 10 to 15 times your annual income, especially if your dependents rely heavily on you.

• Premium Affordability
  While the cover amount is important, so is your ability to consistently pay the premium for the next 15 years. Choose a plan that balances protection and affordability. Use an online calculator to find a 15 year term insurance rate that works with your budget.

• Health and Lifestyle Habits
  Your medical history and habits like smoking, drinking, or chewing tobacco can affect your 15 year term life insurance quote. Be honest while filling out your application, undisclosed health issues can lead to term insurance claim rejection later on.

• Matching the Term with Your Financial Goals
  Think about your long-term goals. If you plan to retire in 15 years or expect to pay off your home loan within that time, a 15 year term life insurance plan aligns well with those goals. It ensures your loved ones are financially protected while those responsibilities are still active.

• Claim Settlement Ratio of the Insurer
  A higher claim settlement ratio means the insurer has a good record of honouring the claims registered. You should always check the CSR and opt for a company with a CSR of over 95%.

• Additional Riders for Extra Protection
  Many term plans offer riders, like critical illness cover, accidental death benefit, or waiver of premium, which can enhance your base policy. These are availbale at additional nominal premiums and can be added to enhance the coverage of your base policy.

• Platform and Support Services
  You should always check and compare multiple insurers, check their 15 year term life insurance costs, their benefits, and features. You can also go through their customer reviews and persistency ratio to get a better understanding of their customer service.

FAQs